Can Scientific Games Meet These Numbers?

Updated

Scientific Games (NAS: SGMS) is expected to report Q1 earnings on May 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Scientific Games's revenues will wither -3.0% and EPS will wither -33.3%.

The average estimate for revenue is $227.6 million. On the bottom line, the average EPS estimate is $0.02.


Revenue details
Last quarter, Scientific Games reported revenue of $249.2 million. GAAP reported sales were 4.3% higher than the prior-year quarter's $239.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.23. GAAP EPS were -$0.30 for Q4 compared to -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 44.1%, 90 basis points better than the prior-year quarter. Operating margin was 11.0%, 60 basis points better than the prior-year quarter. Net margin was -9.9%, 630 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $940.8 million. The average EPS estimate is $0.23.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 145 members out of 163 rating the stock outperform, and 18 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Scientific Games a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scientific Games is outperform, with an average price target of $9.33.

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The article Can Scientific Games Meet These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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